Bank of McKenney in Virginia said its first-quarter earnings rose 61.15%.

The $185 million-asset bank reported a profit of $448,000, or 24 cents a share, compared with $278,000 in the first quarter of 2009, it said Friday in its report for the quarter ended March 31.

It said the increase stemmed from gains realized when it shifted investment strategies from long-term maturities in favor of short-term placements.

Bank of McKenney's return on average equity during the quarter was 9.61%, compared with 6.36% a year earlier. Its return on average assets increased 33 basis points, to 1%.

Nonperforming loans were 3.41% of total loans, compared with 3.01% as of Dec. 31. Delinquent loans increased to 2.27% of total loans, from 1.25%.

The bank's provision for loan losses, however, declined 34.3% from a year earlier, to $105,000 from $160,000.

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